The Relationship Between the U.S. Dollar Index and Stock Index Futures
INDICES:
Higher closes Wednesday for the Dow, S&P’s and Nasdaq but no changes technically once again. All of the indices continue to be in short term uptrends while forming large potential tops at this time. The dollar continues to be in an uptrend which should keep a lid on the indices working higher and probably making my buy signals short-lived. The reason I say this is that the fed keeps talking about rates probably holding or moving higher but has held up well in spite of this kind of talk.
GRAINS:
Higher closes yesterday for corn, Minneapolis, Kansas City and Chicago wheat along with soybeans and soyoil while lower for oats, rough rice and soymeal. All of the wheat are still holding their respective support areas with my buy signals intact. Corn gave me a buy signal on the 22nd of January which I forgot to change at the end of the grain comments below until today. I do want to apologize for my error. Corn closed higher which continues to show me how strong this market is in the face of bearish news throughout most of the grain producing countries. Still expect choppy markets going into the growing seasons for most of the grains. Corn has a gap at 403 in the May contract and as I mentioned many times before, throughout history grains fill over 90% of their gaps sooner or later. Rice settled lower still is in a major downtrend overall while oats also settled lower for the fifth consecutive trading session making its lowest low since January 22nd back to continuing its downtrend since the middle of November now giving me a belated SELL SIGNAL. The beans and oil settled higher while meal closed lower and my sell signals are still intact.
Read the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.
Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.
The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.